“What should I do when a tenant refuses to pay rent?”
It’s undoubtedly a big problem, and you have to handle this as possible as you can because you could suffer losses very soon. Here are the issues, and you probably already knew that Real Estate Investment is Not an Ezziy Buzzy.
And to make your investment as easy as you can, there are many considerations you need to be aware of. Read on to explore more.
What You Need to Do Before Renting an Apartment
To avoid all these awful scenarios, you have to do many things before handing over your apartment key to the lessee to keep your rights and build trust between you and your clients.
Pick the right Client for Your Apartment
It doesn’t make any sense to rent your apartment to anyone who asks for it. But it doesn’t correct. You have to know much information about the person who will live in your rental home because, in the end, it’s your home, your asset, and your capital.
Set a Fair Grace Period
Before signing any contract with the new tenant, you have to determine the grace period and a clear act that the second party can see before conducting the contract. This grace period will evaluate your actions against the tenant if he procrastinates or refuses to pay the rent.
Impose Fines If a Tenant Does Not Pay the Rent
Be professional and include paying fines if the lessee doesn’t pay the rent in due time or after the grace period. You can set a specific amount or just define a percentage of the rent.
Record All Information Relevant to the Date of Paying
In case the tenant still refuses to pay the overdue payment, this time, you can go to court and take legal action against him. But before doing this, you have to register all transactions between you and the renter to be documented. That’s why it’s critical to record all financial transactions between you and the tenant from the first month to know when he should pay and when he stops paying.
You can use different ways to register this information, by manual or depending on any technological tool, and save it in a drive or cloud to be accessible and stored in a safe place away from any possibility of damage.
Assess the Current Situation According to Results
It’s so important to assess the situation before taking any action. Sometimes the lessee gets confused and forgets about the date of paying rent. Sometimes, he could have troubles or urgent problems that make him unable to pay off the money. So, don’t be in a rush and make a judgment against the renter before even listening to him to know what is wrong with him. Instead, take your time to dwell on the situation and review all options you can take.
So what if you are particular about the situation of the lessee as he is excellent but still refuses to pay your rental fees.
In this case, you can follow these steps:
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Call Him Right Now
Now you have to admit that your rental home should make money for you. It’s a profitable investment, and if it doesn’t make money, it means there is a huge issue, and you have to manage it.
First, call the renter right now and know why he stops paying the rental payment. Be savvy and keep track of his voice to determine if he has already encountered a problem or he just doesn’t have the intention to pay.
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End this Awkard Situation As Possible As You Can
Offer a refresh solution to end this situation as much as possible because the ultimate goal is to recover any money owed. So, if the tenant doesn’t have any payment to pay off, you should know when he could have money or pay half of the rent, for example.
So, if you recognize that the tenant doesn’t be able to bear the rent, you should end this contract right now to reduce the losses caused by this situation. Thus, it would be an excellent idea to complete the whole problem and start promoting your apartment again to find another renter. Be wise, and don’t just think of how you can sue the tenant and forget about your critical situation.
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Send a Reminder Notification and then a Reminder to Leave Home
If the tenant doesn’t make any progress or agree with the terms you have discussed with him; then you need to take strict measures against him.
First, send a reminder notification by email or maybe a mailbox to clarify his unpleasant situation and tell him to know that he is breaking the rules of the contract.
You can mention that this message is the first step of the legal procedures you are about to take if he doesn’t pay money before the expiry of the grace period.
If you don’t find any positive gesture from the renter, in this case, you can send him another message to inform him that he should pay off the rent or he ought to leave your apartment on the due date, which you should set in the notice.
It’s essential to keep yourself calm and away from any violence to secure your rights if you have to go to court. Whilst talking to the renter, be straight and don’t let him provoke you into losing your temper.
File Suit Against Him
After all these negotiations, there is nowhere to go except to the court. If you are in Bahrain, there are many laws you can take advantage of to maintain your rights and require legal action against the renter.
Be prepared and bring all papers, documents, receipts, and the record of payments and also include the messages and notices you send to him before filling this case.
We hope you find this guide helpful, and don’t hesitate to contact us if you need any consultation. We are always here for you and will be more than happy to help you.
